Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2024 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results Merit Medical Investor Call August 1, 2024 Fred Lampropoulos Chairman and CEO Raul Parra CFO 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation and any accompanying management commentary contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Merit’s management believes that certain non-GAAP financial measures provide investors with useful information regardin
Slide 4: Financial Summary: GAAP
Financial Summary: GAAP In millions, except per share amounts and percentages Q2 2024 Q2 2023 % Change YTD 2024 YTD 2023 % Change Revenue $338.0M $320.1M 5.6% $661.5M $617.6M 7.1% Gross Margin 47.7% 47.7% (0.2)% 47.3% 47.1% 0.3% Operating Margin 13.6% 9.0% 51.0% 12.4% 8.9% 38.5% Net Income $35.7M $2
Slide 5: Financial Summary: Non-GAAP
Financial Summary: Non-GAAP* In millions, except per share amounts and percentages Q2 2024 Q2 2023 % Change YTD 2024 YTD 2023 % Change Revenue $336.2M† $320.1M† 5.0% $654.7M† $617.6M† 6.0% Gross Margin 51.5% 51.4% 0.3% 51.2% 50.8% 0.9% Operating Margin 20.1% 19.1% 4.8% 18.5% 17.4% 6.7% Net Income $5
Slide 6: Revenue Breakdown – Q2
Revenue Breakdown – Q2 In thousands, except percentages Region Q2 2024 Q2 2023 $ Change % Change CC % Change* U.S. $194,664 $179,582 $15,082 8.4% 8.5% APAC 66,806 68,713 (1,907) (2.8)% 0.5% EMEA 62,322 59,623 2,699 4.5% 5.2% Rest of World 14,211 12,138 2,073 17.1% 18.4% Total International 143,339 1
Slide 7: Revenue Breakdown - YTD
Revenue Breakdown - YTD In thousands, except percentages Region YTD 2024 YTD 2023 $ Change % Change CC % Change* U.S. $380,758 $350,942 $29,816 8.5% 8.8% APAC 129,671 126,249 3,422 2.7% 6.7% EMEA 123,328 117,676 5,652 4.8% 3.9% Rest of World 27,754 22,754 5,000 22.0% 20.6% Total International 280,75
Slide 8: Financial Metrics
Financial Metrics In millions Metric Q2 2024 Q2 2023 YTD 2024 YTD 2023 Depreciation & Amortization $24.1M $21.8M $47.7M $42.3M Stock Comp (performance-based) 3.5M 2.4M 5.7M 3.7M Stock Comp (not performance-based) 3.4M 3.2M 6.5M 5.8M Operating Cash Flow 68.5M 17.3M 104.7M 31.8M Capital Expenditures-P
Slide 9: Updated 2024 Financial Guidance
Updated 2024 Financial Guidance Updated Guidance (1) Prior Guidance (2) Financial Measure Year Ending % Change Year Ending % Change ($, millions, except per share figures) December 31, 2024 Y/Y December 31, 2024 Y/Y Net S ales $1,335 - $1,345 6% - 7% $1,324 - $1,340 5% - 7% Cardiovascular Segment $1
Slide 10: Appendix
Appendix 10
Slide 11: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures For additional details, please see the accompanying press release and forward-looking statement disclosure. These presentation materials and associated commentary from Merit’s management, as well as the press release issued today, use non-GAAP financial measures,
Slide 12: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Constant Currency Revenue Merit’s constant currency revenue is prepared by converting the current-period reported revenue of subsidiaries whose functional currency is a currency other than the U.S. dollar at the applicable foreign exchange rates in effect
Slide 13: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Net Income Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs and other items set forth in the tables
Slide 14: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Three M onths Ended Three M onths Ended June 30, 2024 June 30, 2023 (a) Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 45,843 $ (
Slide 15: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Six M onths Ended Six M onths Ended June 30, 2024 (a) June 30, 2023 (a) Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 80,191 $ (
Slide 16: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Unaudited; in thousands except percentages) Three M onths Ended Three M onths Ended Six M onths Ended Six M onths Ended June 30, 2024 June 30, 2023 (a) June 30, 2024 (a) June 30, 2023 (a) Amounts % Sales Amounts % Sales Amounts %
Slide 17: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Beginning in the second quarter of 2024, consulting expenses associated with initiatives conducted under our FFG Program are no longer adjusted as part of our non-GAAP mea
Slide 18: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP) (Unaudited; in thousands except percentages) T hree Months Ended Six Months Ended June 30, June 30, % Change 2024 2023 % Change 2024 2023 Reported Revenue 5.6 % $ 338,003 $ 3
Slide 19: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin (Unaudited; as a percentage of reported revenue) T hree Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Reported Gross Margin 47.7 % 47.7 % 47.3 % 47.1 % Add back impact of: Amortization of intangibles 3.9 % 3.6 % 3.9 %
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